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The ETF Board was established under Act No-46 of 1980 and commenced operations on 1st March 1981. It was established under the Ministry of Labour and brought under the Ministry of Finance in 1997. Now HE the President functions as the Minister in charge of ETF in his capacity as the Minister of Finance. All public sector employees who are not entitled to the Govt. Pension Scheme and all private sector employees are members of this Fund while their employers are required to remit 3% of the gross earnings of their employees to the Fund, monthly. Hence, unlike the EPF, only the employer makes a contribution on behalf of the employee/member and hence, it is a non-contributory benefit to the member. During the past 32 years, the Fund has grown rapidly and achieved a total Fund of about Rs 174 Billion by end of December 2013 whilst serving to about 2.2 Million active members on behalf of whom about 70,000 Employers contribute to the Fund.
 
   Main Activities of the Board
Collection of contributions from Employers.
Prudent investment of such Funds.
Providing a range of social and welfare benefits to members and paying out claims.
Enforcement and Legal activities including tracking of non paying employers and collecting of surcharge income.
Maintaining Member Accounts and issuing of Annual member statements.
Declaration of a Dividend to members based on the profits earned by the Fund, annually.
Enrolling Self employed persons as members of the Fund.
 
   Member Benefits
A main objective of establishing the Fund was to provide non-contributory welfare benefits to its members while at present the following 08 schemes are in operation. These benefits are granted irrespective of the balance in the members account and also no deductions are made from their accounts for the benefits paid while the members account is credited with the full interest and dividend declared by the Fund each year.
Benefits scheme
Value
Death Benefits
Rs. 100,000/-
Permanent Disablement
Rs. 200,000/-
Eye lens implant
Rs. 9,000 each eye
Heart Surgery Assistance
Rs. 150,000/-
Kidney Transplant Assistance
Rs. 150,000/-
Hospitalization Scheme
Rs. 25,000/- per year (Rs. 50,000/- for life time).
Year-05 Scholarships
Rs.15,000/- each for 7000 Scholarships per year.
GCE(AL) Examination
Rs.12,000/- each for 5000, Financial grants per year.
"VIYANA" Housing loan Scheme.
Upto Rs. 1,500,000 at concessionary rates of interest
 
  Main Operations
According to the Corporate Plan of the Board, the objective was to achieve a total Fund of Rs.100 billion by year 2010. All operational activities were geared towards this effort, and the performance of all activities have increased in 2008 / 2009 as seen by the following statistics.
Activity
2009
2008
2007
Contributions from Employers
8732 million
8304 million
6912 million
Investment Income
14263 million
11280 million
7176 million  
Surcharge Income
161 million
156 million
108 million
Enforcement and Legal recoveries
709 million
600 million
432 million
Claims refund payments
6401 million
4944 million
4200 million
Benefit Claims payment
170 million
114 million
120 million
Net Profit
13961 million
       9,603 million
7,434 million
Size of the Member's Fund
103 billion
89 billion
73 billion
 
  Investments
Over 91% of the ETF Investments are placed in Government Securities yielding a guaranteed high return in the prevailing market conditions. Statutorily, the Board should declare an annual Dividend + Interest to all its members and the Board declared 10.0% for year 2013.
 
   Regional Office Network
The Board has a network of 17 Regional offices in major cities such as Colombo, Gampaha, Kandy, Ratnapura, Kalutara, Galle, Matara, Kurunegala, Anuradhapura, Hatton, Badulla., Kegalle, Hambantota, Ampara and Jaffna. This has further strengthen the Enforcement activities in the respective areas and increase the Revenue.
 
   Information Technology
  Major innovations in the IT field has been launched as follows,
The main Computer system has been upgraded with adequate capacity to serve the needs of the Members speedily.
All Regional Offices have been linked with the Head Office Computer system to function online.
Payment of Claims have been decentralized in 04 Regional Offices (Gampaha, Kandy, Matara and Kurunegala) to ensure a more member friendly service and this facility would be extended to other Regional Offices as well in future.
The facility for the Employers to pay their contributions online (Internet Banking) has been in operational since September 2008.  This would be a major development in the receipt of Contributions and the process would be more Employer friendly.
The Member Accounts are being updated to ensure that all accounts would be online from year 2010.
 
   Self Employment
The Board is focusing its active attention to promote Self employment activities by enrolling more Self employed members to the Fund. In this connection, Self employment promotion officers have been appointed to cover major districts. The main target groups are the Samurdhi recipients, Diary farmers, Newspaper Agents, Lottery Agents and Three wheel drivers.
 
   Future Plans
The ETF Board is still without its own Office complex in Colombo, and operates 04 rented offices in the Narahenpita, Nawala area.  The Cabinet of Ministers has approved to construct a modern office complex which will house the ETF, the EPF(Labour Dept) and a part of the EPF (Central Bank) as a “one – stop shop”. Construction of this building is expected to be commenced during 2009.
The ETF owns a valuable property of 2 ¼ acres at Nawam Mawatha Colombo 02 which is presently leased out as a Car park generating an income of Rs. 1.5 Million per month. We are looking at the possibility of entering in to a joint venture project to develop this property, as a commercial venture.
 
   Achievements in 2008.
Featured in the prestigious LMD Magazine (June issue) and ranked 08th place among the Public Enterprises for 2007 while the same Magazine ranked the Board the 12th place in 2006.
Highlighted in the Ministry of Finance Annual Report for 2007 as the Organization having the highest net asset value of Rs. 66,735 million and profits of Rs. 4,196 million.
 
 
   
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